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Cash flows NPVs, IRRs, Payback Periods

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Assistance is needed to draw up an incremental cash flow for the following two options (attached files) then calculate the net present values, internal rate of return and payback period.

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The attached file has 3 Excel sheets. In the first 2 the cash flows, NPV, and IRR are calculated separately for each option, Boeing, and Airbus, respectively. The third sheet shows the incremental cash flows. According to sheet 3, we should choose the Boeing option since the ...

Solution Summary

The solution draws up an incremental cash flow for the given options.